The agency of the future will have “Home Buying Specialists” who guide a family through the local buying experience and even provide their own extended-stay options and home inspection professionals.

third, you had the HUD inspection (and presumably other inspections?)

They require a $5,000 non refundable deposit and no inspections so for someone out of state like you that's going to be fairly challenging model to work with. 

I can only speak in regards to Minneapolis, but a conversion fee is described by Minneapolis as a type of inspection fee: “When a dwelling is converted to rental property or has not had a license for the past 12 months, it must be inspected for compliance with the Housing Maintenance Code.

I just got the home inspection report and it seems there is a 3" variance in one section of the home.

Inspections were done and he requested to have some repairs done which I was fine with it. 

I always attend my buyer's home inspections.

The problem with this is that the property is paid in full with a $20k tax lien, so the cost of the property if it goes to public auction will likely be closer to $300k and make this less of a deal.Contact the distant relatives to stop the foreclosure process.

Part of me wonders if I would even pass inspection because my property doesn't have an entry/front door (you have to enter through the garage door).Thanks in advance for your insight.

Make end buyer payment closer to rent prices and now you have good cash flow.